SEMILEDS CORPORATION (NASDAQ:LEDS) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On November 25, 2019, the Company received a notice from The NASDAQ Stock Market (“Nasdaq”) indicating that the Company did not meet the minimum of $2,500,000 in stockholders’ equity required by Listing Rule 5550(b)(1) for continued listing. The Company also did not meet the alternatives of market value of listed securities or net income from continuing operations. Under the listing rule, the Company had 45 calendar days to submit a plan to regain compliance, which the Company did. The plan was accepted by Nasdaq, and Nasdaq granted an extension of up to May 25, 2020 for the Company to regain compliance.
As reported in the Company’s Quarterly Report on Form 10-Q, the Company’s total stockholders’ equity as of February 29, 2020 was $2,393 thousand. Since the Form 10-Q was filed on April 10, 2020, the Company entered into a Common Stock Purchase Agreement dated May 25, 2020 with FengShuang Zhu to purchase 33,333 shares of common stock for an aggregate purchase price of $100,000, and the partial conversion of the convertible unsecured promissory note held by J.R Simplot Company and the Company’s Chairman and CEO Trung Doan to Common stocks. As a result of the stock sale, and partial conversion of the promissory note to common stock, as of the date of this Form 8-K, the Company believes that is has regained compliance with the stockholders’ equity requirement.
The Company understands that Nasdaq will continue to monitor the Company’s ongoing compliance with the stockholders’ equity requirement and, if at the time of its next periodic report the Company does not evidence compliance, that it may be subject to delisting.
About SEMILEDS CORPORATION (NASDAQ:LEDS)
SemiLEDs Corporation develops, manufactures and sells light emitting diode (LED) chips and LED components. The Company’s products are used primarily for general lighting applications, including street lights and commercial, industrial and residential lighting. Its LED chips may also be used in specialty industrial applications, such as ultraviolet (UV), curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. The Company produces a range of blue, white, green and UV LED chips, including its Enhanced Vertical (EV) LED product series, ranging from chip sizes of approximately 380 microns (um) by 380um to 1,520um by 1,520um. It designs, assembles and sells lighting fixtures and systems for general lighting applications, including commercial, residential and industrial lighting. Its lighting products consist primarily of LED luminaries and LED retrofits.
